sebi:WTM/VKC/MIRSD/4/09/06
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Facts / Headnote
Minor penalty of suspension of certificate of registration for a period of fifteen days, effective on expiry of 21 days from the date of order
Provisions invoked
- s. 19
- s. 12
Regulations
- Reg. 6
- Reg. 13(4)
- Reg. 3
- Reg. 12
- Reg. 5
- Reg. 200
- Reg. 19
Parties
- Vinod Kumar & Co., Member, U.P. Stock Exchange Association Ltd., SEBI Registration No. INB 100694710
Holding
The Whole Time Member held Vinod Kumar & Co. guilty of multiple regulatory violations and imposed a minor penalty of suspension of certificate of registration for fifteen days under Regulation 13(4) of the Enquiry Regulations.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER (Under Regulation 13(4) of SEBI (Procedure of Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002) 1.1 Vinod Kumar & Co. (hereinafter referred to as “broker”) is a proprietary concern and registered with Securities and Exchange Board o (hereinafter referred as SEBI) as a broker of Uttar Pradesh Stock Exchange Association Ltd. bearing SEBI Registration No. (INB 100694710 broker is also a sub-broker of BSE affiliated through the UPSE Securities Ltd. (a subsidiary of UPSE) with SEBI Regn. No. INS 010789415. 1.2 Securities and Exchange Board of India (hereinafter referred to as SEBI) carried out an inspection under Regulation 19 (1) of SEBI (Stock B and Sub Brokers) Regulations, 1992 (hereinafter referred as the Broker Regulations). The inspection was carried out for the period of Ap 2001 to March 31, 2003 by Nripendra & Co., Chartered Accountants. During the inspection, several irregularities / violations were found t been committed by the broker.
on ‘Own Account’. Enquiry Officer found that these acts reflect lack of transparency on the part of broker. I agree with the findings of the E Officer that the broker has to maintain high standards of integrity and fairness in all conducts of its business. By doing the above broker h complied with the Code of Conduct prescribed by SEBI under Schedule II of Broker Regulations.
procedures to enforce the code as specified under the aforesaid Regulations, which it failed. Hence, I agree with the findings of the E Officer and find the broker guilty on this count. 3.2 I have noted the submissions of the broker that its trading terminal has been deactivated by UPSE on surrender of its certificate of regis on May 12, 2004. However, this can neither be a defense for escaping the penalty nor it precludes SEBI from passing this order on merit open for the broker to get the certificate of registration forwarded through UPSE to SEBI for cancellation in accordance with the Regulation 3.3 Having regard to the gravity of charges established and in the facts and the circumstances of the case, I am of the view that a pen suspension of certificate of registration for fifteen days would be adequate.
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Source: SecMarx — sebi:WTM/VKC/MIRSD/4/09/06. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.